Correlation Between International Game and Sankyo
Can any of the company-specific risk be diversified away by investing in both International Game and Sankyo at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining International Game and Sankyo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Sankyo Co, you can compare the effects of market volatilities on International Game and Sankyo and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in International Game with a short position of Sankyo. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Sankyo.
Diversification Opportunities for International Game and Sankyo
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Sankyo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Sankyo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sankyo and International Game is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on International Game Technology are associated (or correlated) with Sankyo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sankyo has no effect on the direction of International Game i.e., International Game and Sankyo go up and down completely randomly.
Pair Corralation between International Game and Sankyo
Assuming the 90 days horizon International Game Technology is expected to under-perform the Sankyo. In addition to that, International Game is 1.18 times more volatile than Sankyo Co. It trades about -0.02 of its total potential returns per unit of risk. Sankyo Co is currently generating about 0.26 per unit of volatility. If you would invest 1,180 in Sankyo Co on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Sankyo Co or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Sankyo Co
Performance |
| Timeline |
| International Game |
| Sankyo |
International Game and Sankyo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Sankyo
The main advantage of trading using opposite International Game and Sankyo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Sankyo can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sankyo will offset losses from the drop in Sankyo's long position.| International Game vs. Aluminum of | International Game vs. HOCHSCHILD MINING | International Game vs. GigaMedia | International Game vs. QINGCI GAMES INC |
| Sankyo vs. UMC Electronics Co | Sankyo vs. Electronic Arts | Sankyo vs. Cogent Communications Holdings | Sankyo vs. United Internet AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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